The nonprofit software company reported net income of slightly more than $9 million in the most recently ended quarter, compared to a loss of $10.3 million a year ago. Third-quarter revenue was $277.6 million up 6.2 percent from $26.3 million in last year’s corresponding period. During the recent earnings webcast, CFO Tony Boor commented, “We continued to see excellent results from modernizing our pricing model in the social sector.” The company has given some general descriptions of price changes that have accompanied Blackbaud’s move to three-year contracts instead of one-year subscriptions. “Last year, the majority of contract renewals were for a one-year term, this year the vast majority have been for a three-year term,” he said. He noted that there are “embedded mid to high single-digit price escalations in years two and three of multi-year contracts.” The change provides greater predictability of revenue and also reduces the amount of work involved in renewals Blackbaud’s bottom line benefited from a $13-million reduction in costs during the quarter.
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Price increases and longer subscriptions contributed to Blackbaud’s growth for the third quarter ended September 30.